BoC’s Poloz: Limited access to markets for Canadian crude remains a significant source of uncertainty

Following the Bank of Canada’s decision to keep the overnight rate target unchanged at 1.75%, Governor Stephen S. Poloz, and Senior Deputy Governor Carolyn A. Wilkins are delivering their remarks on the monetary policy outlook with key quotes, via Reuters, found below.

• Monetary policy needs to maintain a degree of accommodation sufficient to offset various headwinds until the economic outlook improves.
• Economy has slowed and some excess capacity has re-emerged, although this excess capacity is not generalized across the entire economy.
• If recent slowdown in economy persists, then we would foresee inflation trending below target in the future; we believe slowdown of growth to a below-potential pace will prove to be temporary.
• Limited access to markets for Canadian crude remains a significant source of drag and uncertainty.
• Foubts about the ratification of new North American trade treaty remain a downside risk to our investment outlook.
• There is good reason to believe that the economy will pick up in the second half of the year.